'Disinvestment money to be re-invested in NALCO'
The Mines Ministry has agreed to offload 10 per cent stake from state-run National Aluminium Company (NALCO), but with a rider that proceeds from the disinvestment should be re-invested in NALCO.
By PTI |
NEW DELHI: The Mines Ministry has agreed to offload 10 per cent stake from state-run National Aluminium Company (NALCO), but with a rider that proceeds from the disinvestment should be re-invested in NALCO.
"We are against disinvestment of profit-making PSUs under the Mines Ministry and NALCO has been doing reasonably well. However, we have agreed to Finance Ministry's proposal to offload 10 per cent stake in the PSU, but money accrued from the disinvestment should be re-invested in NALCO," Mines Minister Sis Ram Ola told reporters here on Tuesday.
The Finance Ministry has proposed splitting of shares of NALCO to ensure maximum participation of retail investors in the disinvestment of the PSU.
"In view of the high market price of the share of NALCO, it would be necessary to consider splitting of the shares in order to provide affordability to small investors and to allot shares to a large number of investors," the Finance Ministry said in a note for the CCEA for off-loading 10 per cent of the shares in NALCO through public offer.
The government has proposed to off-load 10 per cent of shares in NALCO in the market which will bring down its stake in the company to 77.15 per cent.
When asked to comment on how the Mines Ministry would react if the money accrued from disinvestment were put in the National Investment Fund (NIF) by the government, Ola quipped "we are not above the government."
By selling 6,44,30,962 shares in the company the government could raise up to Rs 1,400 crore based on the price of the company's scrip on the stock exchanges.
"We are against disinvestment of profit-making PSUs under the Mines Ministry and NALCO has been doing reasonably well. However, we have agreed to Finance Ministry's proposal to offload 10 per cent stake in the PSU, but money accrued from the disinvestment should be re-invested in NALCO," Mines Minister Sis Ram Ola told reporters here on Tuesday.
The Finance Ministry has proposed splitting of shares of NALCO to ensure maximum participation of retail investors in the disinvestment of the PSU.
"In view of the high market price of the share of NALCO, it would be necessary to consider splitting of the shares in order to provide affordability to small investors and to allot shares to a large number of investors," the Finance Ministry said in a note for the CCEA for off-loading 10 per cent of the shares in NALCO through public offer.
The government has proposed to off-load 10 per cent of shares in NALCO in the market which will bring down its stake in the company to 77.15 per cent.
When asked to comment on how the Mines Ministry would react if the money accrued from disinvestment were put in the National Investment Fund (NIF) by the government, Ola quipped "we are not above the government."
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By selling 6,44,30,962 shares in the company the government could raise up to Rs 1,400 crore based on the price of the company's scrip on the stock exchanges.
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